3 Reasons Pembina Is Hands Down The Best Monthly Dividend Stock You Can Buy For 2020 by Brad Thomas

---

via @leo.syndication:

---

"Summary

• PBA is a Canadian corporation, meaning that it pays qualified dividends (no K-1) in Canadian dollars.
• There's also a 15% tax withholding to consider, for taxable accounts. Due to a tax treaty between Canada and the US, this doesn't apply to retirement accounts.
• For taxable accounts, there's a tax credit that can recoup all of the withholding amount.
• Looking for a portfolio of ideas like this one? Members of iREIT on Alpha get exclusive access to our model portfolio. Get started today »

This article was co-produced with Dividend Sensei and edited by Brad Thomas. We recently decided to add Pembina Pipeline (NYSE:PBA) to our monthly-paying coverage (along with Broadmark Realty (NYSE:BRMK) - see article here).

Monthly dividend stocks are a great way to pay the bills, which is why they are so popular among income investors. The trouble is that most monthly payers are in riskier industries or asset classes such as CEFs or BDCs.

We aren't interested in yield traps that cut their dividends during recessions (i.e. - CBL article here), but only in recommending quality income paying stocks you can rely on in all economic and market conditions.

As part of that promise, we want to offer a deep dive on Pembina Pipeline, one of the safest midstream and monthly dividend stocks few people have heard of.

Pembina Total Returns Since 2004

(Source: Portfolio Visualizer) portfolio 1 = PBA

That's a shame because even factoring in the longest midstream bear market in midstream history, Pembina is a proven master of compounding both safe income and wealth over time. That includes doubling the market's returns over the past 15 years, all while delivering a utility like 75% less volatility over time.

So, let's look at the three reasons why 5.2% yielding Pembina isn't just a very strong buy today, but hands down the best monthly dividend stock you can buy for 2020 and far beyond.

Reason 1: A Great Recession Resistant Business Model That Makes For Very Safe Dividends

Midstream is all about the dividend, which means the first thing investors need to consider is the stability and recession-resistance of its cash flow.

(Source: investor presentation) - pro forma to include Kinder Morgan Canada assets

Pembina is a mini-version of Enterprise Products Partners (EPD), with a vertically-integrated midstream infrastructure base that's focused primarily on the Alberta tar sands (the Texas of Canada). Like Enterprise, Pembina has its finger in virtually every part of the energy supply chain"

...Originally Posted On Seeking Alpha

---

Author Bio:

Steem Account: @bradthomas
Twitter Account: rbradthomas

Steem Account Status: Unclaimed

Are you Brad Thomas? If so, you have a Steem account that is unclaimed with pending cryptocurrency rewards sitting in it from your content. Your account was reserved by the Steemleo team and is receiving the rewards of all posts syndicated from your content on other sites.

If you want to claim this account and the rewards that it has been collecting, please contact the Steemleo team via twitter or discord to claim the account. You can also view the rewards currently sitting in the account by visiting the wallet page for this account.

What is Steemleo Content Syndication?

The Steemleo community is syndicating high-quality financial content from across the internet. We're also creating free Steem accounts for the authors of that content who have not yet discovered the Steem blockchain as a means to monetizing their content and we're listing those accounts as the 100% beneficiaries to all the rewards. If you want to learn more about Steemleo's content syndication strategy, click here.